The UP government on Thursday rejected the demand of the Samajwadi Party for reducing VAT on petroleum products like petrol and diesel.

Replying to a question in the state Assembly, Parliamentary Affairs Minister Lalji Verma admitted that inflation had hit the people hard but said it was not possible for the government to reduce the taxes on petroleum products as it will hit the finances of the state.

Quoting tax rates in other states, the minister said in Andhra Pradesh and Tamil Nadu, the tax on petroleum products was much higher than in UP. In UP, there was 17.23 per cent VAT on diesel and 26.55 per cent on petrol, white the rates in Andhra Pradesh and Tamil Nadu were 30 per cent on diesel and 33 per cent on petrol.

Not satisfied with the ministers reply, the SP members staged a noisy walkout.

Replying to another question by Radha Mohan Agarwal (BJP), Minister of State for Sports Ayodhya Prasad Pal said there was no sports policy in the state nor was there any proposal before the government to formulate a sports policy in near future.

The minister said the state has a sports college and other infrastructure for training and that several UP sportsmen bagged medals in the Commonwealth and Asian Games.